Bottom line: Phoenix Satellite TV’s latest results show a traditional broadcaster that failed to make the transition to new media, and could auger a decline that sees the company close or get acquired in the next 5 years.
As second-quarter earnings season winds down, I thought I’d take a look at the newly released interim results from Phoenix Satellite TV (HKEx: 2008), a former Chinese media pioneer that’s in a clear state of decline with no sign of turnaround. I used to be a big fan of Phoenix and saw a big future for the company, after it became one of the first independent TV news providers in China in the early 2000s. But the company’s colorful founder Liu Changle hasn’t been very skillful at parlaying his early success into the new media realm, with the result that the company’s outlook is fading rapidly. Read Full Post…
The following press releases and news reports about China companies were carried on September 6. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Starts Selling Down Meituan-Dianping Stake (Chinese article)
Tencent (HKEx: 700) Passes China Mobile to Become Asia’s Most Valuable Firm (Chinese article)
LeEco (Shenzhen: 300104) Says Car Unit to Reach Volume Production in 3 Years (Chinese article)
O2O Grocery Platform Huimin Secures 1.3 Bln Yuan Series B Funding (English article)
Phoenix Satellite TV (HKEx: 2008) Reports Interim Results (HKEx announcement)
Bottom line: Phoenix Satellite and its new media arm will continue to sputter due to China’s slowing economy and a lackluster move into mobile advertising, and founder Liu Changle should consider selling the company.
Things aren’t looking too good these days for Hong Kong-based Phoenix Satellite (HKEx: 2008), a former rising star in China’s tightly controlled media market that has stumbled badly due to its inability to adapt to a changing industry landscape. Phoenix warned of a major profit decline last month due to a soft TV ad market (previous post), and now its younger Phoenix New Media (NYSE: FENG) unit is also showing signs of distress due to a heavy reliance on portal advertising delivered over traditional desktop computers.
The new quarterly earnings report from Phoenix New Media does contain one bright spot, namely a 124 percent increase in revenue from advertising services offered over smartphones and other mobile devices. (company announcement) But that part of the business is still quite small, with the result that Phoenix New Media reported overall advertising revenue growth of just 7.2 percent, and overall revenue growth of 2.9 percent during the second quarter of this year. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 29. To view a full article or story, click on the link next to the headline.
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Chinese ADRs Drop 3rd Day Amid Mainland Rout, Baidu (Nasdaq: BIDU) Plunges (English article)
WeChat Italy, ChatSim In Deal to Jointly Promote Instant Messaging in Europe (company announcement)
Air China (HKEx: 753) to Raise $1.9 Bln in Share Sale to Buy Planes (English article)
Phoenix Satellite (HKEx: 2008) Warns of Substantial Profit Decline in H1 (HKEx announcement)
Perfect World (Nasdaq: PWRD) Announces Completion of Merger (PRNewswire)
The following press releases and media reports about Chinese companies were carried on March 18. To view a full article or story, click on the link next to the headline.
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Uber, Yidao To Merge Under Baidu-Led (Nasdaq: BIDU) Plan – Source (Chinese article)
Alibaba (NYSE: BABA) Post-IPO Lock-Up Period Ends, Releasing 340 Mln Shares (Chinese article)
Unicom Proposes Plan To Buy Back Up To 10 Pct Of Shares (HKEx announcement)
Phoenix Satellite TV Announces Full-Year 2014 Results (HKEx announcement)
Solar Power Installation To Hit 17.8 Gigawatts This Year, Ahead Of Forecasts (Chinese article)
The following press releases and media reports about Chinese companies were carried on March 5. To view a full article or story, click on the link next to the headline.
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China Says Tech Firms Have Nothing To Fear From Anti-Terror Law (English article)
China’s Net Mobile Users Could Shrink This Year – Unicom (HKEx: 762) Chief (Chinese article)
Trina Solar (NYSE: TSL) Announces Q4 And Full Year 2014 Results (PRNewswire)
Phoenix SatelliteTV (HKEx: 3002) Warns Of 24-32 Pct Profit Drop For 2014 (HKEx announcement)
China Mobile (HKEx: 941) Launches 4G Roaming Services in 71 Countries And Regions (PRNewswire)
Beijing’s crackdown on excessive spending by officials has claimed one of its first victims in the media sector, with word that leading independent broadcaster Phoenix Satellite TV’s (HKEx: 2008) profits tumbled in the first half of the year due to flagging revenue from luxury goods advertisers. The news isn’t all that surprising, since Beijing’s crackdown has been going on for more than a year now. Now we’ll have wait and see how long the slowdown lasts, whether it intensifies, and who else is most vulnerable. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 24. To view a full article or story, click on the link next to the headline.
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McDonald’s (NYSE: MCD) Sticks By Meat Supplier OSI After Yum Severs Ties (English article)
SAIC (Shanghai: 600104), Alibaba Partner In Internet Car Initiative (Chinese article)
First Foreign-Invested Hospital Approved, Obstacles Remain (Chinese article)
Phoenix Satellite TV (HKEx: 2008) Announces Profit Warning (HKEx announcement)
Lenovo (HKEx: 992) To Launch, Air Purifiers, Other Smart Devices (Chinese article)
The following press releases and media reports about Chinese companies were carried on October 19-21. To view a full article or story, click on the link next to the headline.
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The following press releases and media reports about Chinese companies were carried on April 20-22. To view a full article or story, click on the link next to the headline.
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GM (NYSE: GM) Renews Cadillac Campaign In China (English article)
China Mobile (HKEx: 941) Launches 20 Bln Yuan Tender For TD-LTE (Chinese article)